The Biden-Harris Administration is focused on comprehensively addressing the threats caused by foreign automobiles and supply chains.
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| US President Joe Biden. Image Courtesy: White House |
Washington, USA - September 23, 2024:
The Biden-Harris Administration is taking decisive action to protect the United States from the national security risks associated with connected vehicle technologies from countries of concern, particularly China and Russia. These technologies, which include computer systems that control vehicle movement and collect sensitive driver and passenger data, as well as cameras and sensors that enable automated driving systems and record detailed information about American infrastructure, pose new and growing threats to our national security.
The Department of Commerce is issuing a notice of proposed rulemaking (NPRM) that, if finalized, would prohibit the sale or import of connected vehicles that incorporate certain technology and the import of particular components themselves from countries of concern. This is the latest step in a process President Biden announced in February 2024, and it incorporates public feedback submitted in response to the Department's advance notice of proposed rulemaking (ANPRM) issued on March 1, 2024.
Connected vehicles provide many benefits, such as promoting vehicle safety and assisting drivers with navigation. However, they also create new opportunities for malicious actors to collect and exploit sensitive information. Certain hardware and software in connected vehicles enable the capture of information about geographic areas or critical infrastructure, and present opportunities for disruption.
The Department of Commerce has determined that certain technologies used in connected vehicles from the PRC and Russia present particularly acute threats. These countries of concern could use critical technologies within our supply chains for surveillance and sabotage to undermine national security.
The proposed rule would prohibit the import or sale of certain connected vehicle systems designed, developed, manufactured, or supplied by entities with a sufficient nexus to the PRC or Russia. Specifically, the rule covers "vehicle connectivity systems" (VCS) and "automated driving systems" (ADS). The rule includes restrictions on imports or sales of connected vehicles using VCS and ADS software, as well as imports of VCS hardware equipment. The Department of Commerce is also proposing procedures to let certain parties, such as small producers of vehicles, receive exemptions from the prohibitions on an exceptional basis, in order to minimize unintended and unnecessary disruption to industry.
The prohibitions on software would take effect for Model Year 2027, and the prohibitions on hardware would take effect for Model Year 2030, or January 1, 2029 for units without a model year. These restrictions will help address national security risks posed by connected vehicle technologies from countries of concern.
As the Department of Commerce develops the final rule, the Administration encourages interested stakeholders to share input with the Department so that their views can be taken into consideration. The Department will continue to consult closely with industry, U.S. allies and partners, and other stakeholders throughout the regulatory process to ensure any actions maximally protect U.S. national security, while minimizing unintended consequences or disruptions.
The Biden-Harris Administration is focused on comprehensively addressing the threats caused by foreign automobiles and supply chains. In May of this year, President Biden directed an increase from 25% to 100% on the tariff rate on Chinese electric vehicles under Section 301. The Inflation Reduction Act tied eligibility for the $7,500 EV tax credit to final assembly in North America and sourcing key battery minerals and components from the United States or trade partners. These prior actions underscore the Administration's commitment to ensuring that the American auto industry is leading in quality and innovation, and that U.S. automakers have the opportunity to compete on a level playing field as they develop the next generation of automobiles.